Havant BC will dip into its reserves as part of a package of measures to prepare for ending its partnership with East Hampshire DC.
Independent advice from the Chartered Institute of Public Finance and Accountancy (CIPFA) said the council may have the financial resources needed to become a standalone council after 12 years, but warned of various financial risks that should be mitigated.
Havant leader Alex Rennie said: ‘As an independent council we will be free to pursue our own objectives and explore new opportunities that are currently closed to us.’
Councillors have claimed the split between the councils has been instigated by East Hampshire.